Inflation and its disadvantages
Posted by Steven
Inflation is the persistent rise in general price levels of market. Due to increasing inflation, the value of dollar becomes less and higher inflation rates will have serious political, social and economic impact. Inflation can be a great difficulty for people with fixed income like self-funded retirees and pensioners since their income will not increase with the rise of prices. Inflation will redistribute income for people with lower income to higher income as the value of real assets like property increases with inflation. Generally when inflation is high, people lose faith in currency and start investing in real assets like land, property, gold, silver etc. higher inflation rates results in higher interest rates and it’s difficult to get loans for emergencies.
